ATHENA-international rating agency Standard & Poor's (S & P) warned that the involvement of European private banks in the takeover of Greece's debt could increase the risk of failure.
S & P even said that if the Greeks accepted the French proposal to voluntarily change the way the Greek earned funds by involving private sector, will make Greece's debt rating under the agency's criteria. French banks, which holds the Greek foreign debt, previously wanted to Greece to extend the maturity of the bonds.
This proposal is supported by the German debt holders Greece's second largest. "If it is followed, is tantamount to failure to make Greece even more selective," said S & P. In another part, Chairman of European Finance Ministers Jean-Calude Juncker said that if the Greeks still request an additional bailout of the European Union and the IMF, in the future they will lose their sovereignty and many people lost their jobs. These consequences must be accepted Greek as an effort to avoid default on debt. The same thing never experienced the era of East Germany in the 1990s.
It was privatized state-owned enterprises reached only 14 thousand companies in the period 1990-1994. Greece has a problem on the low competitiveness as well as East Germany before joining West Germany. Before it merged with West Germany, East German communist minded listed as one of the countries in Europe with the highest unemployment rate. "The sovereignty of Greece became a limited instantaneous. The consequences would be unpleasant," said Juncker. Juncker's comments sparked criticism from U.S. President Spyros Papaspyros Adedy Working Greece.
Adedy call, Juncker has been disturbing the country's internal affairs and provoking the European rules. Saturday, July 2 last, the Minister of Finance approved the Euro Zone Greece 12 billion euro loan to prevent default. The approval came after the Greek parliament approved the austerity measures amounting to 28 billion euros ($ 40 billion) and promises to bring revenue worth 50 billion euros in 2015. The International Monetary Fund (IMF) and the European Union as well as the new Greek government will meet on July 8 to finalize a bailout is to be submitted disbursement on 15 July.
12 billion euro bailout agreed to yesterday is a continuation of the scheme's first fund worth 110 billion dollars to be disbursed in March a new 53 billion euros. However, a number of people declared, Greece still need a second bailout worth 110 billion, though still debated. EFG Eurobank economist Platon Monokroussos said Greece should accelerate fiscal adjustment and structural reform. It was necessary to balance expenditures and revenues are crippled because of loss of competitiveness.
The socialist government that regulates social welfare in Greece has not yet started selling assets and tax reform to meet the target. The new plan will be discussed this weekend. The Greek government aims to sell assets including its own properties is expected to reach 300 billion euros, although faced with a number of legal problems. Greek businessmen pessimistic target asset sales could be a success. This is due to the government-owned shares in state enterprises are low because of the recession.
"Targeting the 50 billion euro in 2015 could not be reached," said Commerce Chairman Constantinos Mihalos Athens. Meanwhile, Greek Finance Minister Evangelos Venizelos yesterday said that after the bailout approved, the Greek government is targeting economic improvement in order not to fall deeper. The initiative will be discussed in a few days or weeks ahead.
"The target we could restore the economy out of crisis and provide benefits to citizens, especially those who do not have jobs and low-income groups," he said.